Store rentals are flourishing
Consumer confidence may be suffering due to price hikes across the market, but demand for store rentals in popular locations has been continuing its steady recovery in recent months.
There are two reasons for that phenomenon: The first concerns the shortage of properties, especially in the most popular commercial areas, leading chains to lease new spaces in a bid to secure the best possible locations for their physical stores. The second reason is the fact rental rates remain at reasonable levels, especially compared to the period before the financial crisis of the 2010s, when rental rates and the so-call “goodwill” had exceeded all precedence in central Athens, turning Ermou Street into one of the world’s 10 most expensive high streets.
In that context, according to an analysis by property service company Proprius, the year’s first quarter saw several companies opening new stores, led by the sectors of sports goods, jewelry and luxury items (apparel etc).
For example, in the year’s first three months Sephora opened a new store on Mykonos, a Calvin Klein branch launched in Patra and a Molton Brown in Kifissia. Sporting goods retailer Buzz opened a new shop in the center of Piraeus, while fashion designer Diane Von Furstenberg opened a store in Glyfada. Another sports chain, Zakcret, opened a store in Ioannina.
An important development for the Greek market is the return of the Carrefour supermarket chain, through its cooperation with Retail & More, a TeleUnicom subsidiary. The first five branches opened a few days ago: There are three in Halkidiki and two on Zakynthos; seven more are planned, with an emphasis on tourism destinations.
Proprius data revealed a small increase in rental rates in Q1 compared to the same period in 2021, following a stagnant quarter at the end of last year.
Leasing a store on Ermou currently costs some 270 euros per square meter per month, up from €250/sq.m. a year ago. In Kifissia the rate stands at €110/sq.m., in Glyfada at €130/sq.m. and in Kolonaki at €95/sq.m.
